Is Microsoft Still A Buy

last updated on

Is Microsoft Still A Buy

Is Microsoft (Msft) Still A Buy After Recent Sell-Off?

Microsoft (MSFT) isn't having a good time in the stock market as of late. Amidst this, many are questioning if Microsoft (MSFT) is still a buy or not!

Within just a week, Microsoft (MSFT) has declined by 6% and the forward P/E is x27. So, even the forward P/E of the company is not cheap which makes many question about the real price of Microsoft (MSFT) stock.

Microsoft (Msft) Fails To Impress Investors

Another reason why Microsoft (MSFT) has been bearish recently is due to the latest results. The Intelligent Cloud division, in particular, failed to impress with its results.

As of now, the Intelligent Cloud is responsible for 43% of Microsoft's total revenue and a little higher for its operating income.

The results also showed a 19% increase in the revenue from Microsoft's Azure. However, its not that impressive when we look at the average growth of 30% in the last few years.

According to Microsoft, the key reason for the recent results is the supply constraints. In addition, the company has also failed to build the required data centres to match consumer demand.

For the next quarter, the revenue growth of Microsoft (MSFT) will remain slow. However, Microsoft (MSFT) believes it will jump to 32% as they are working to solve capacity issues.

Up ahead, the results of the Amazon and Alphabet will also be closely watched. Better than expected results could lead to more downside for Microsoft (MSFT).

Overall, the Microsoft (MSFT) stock doesn't look that attractive for now. This is based on the recent results and the forecasts for the next few quarters.

However, it's important to keep a close eye on the Microsoft (MSFT) stock. If the price goes down, it could become an attractive stock once again. After all, the Microsoft (MSFT) business is still strong even if the results are not in line with investors' expectations.

Trending Stories